Dar es Salaam. Tanzania is intensifying its efforts to transition to a cash-lite economy, a move which necessitates innovative digital financial solutions to improve efficiency, transparency, and financial inclusion.
The Bank of Tanzania (BoT) Governor, Mr Emmanuel Tutuba, said on Thursday, March 6, 2025, that the transition from a cash-based to a cash-lite economy will enhance financial resilience, stability, and inclusivity particularly for underserved communities.
Speaking at the 9th Gilman Rutihinda Memorial Lecture, themed: Driving the Shift towards a Cash-Lite Economy: Opportunities for Financial Innovation and Inclusion, Mr Tutuba noted that Tanzania’s financial landscape is increasingly shaped by mobile money, digital wallets, and locally tailored financial solutions that have simplified transactions and bolstered security.
“Mobile money, in particular, has transformed business and personal transactions, strengthening financial inclusion and fostering economic empowerment,” he asserted.
Findings from the latest Finscope survey reveal that 76 per cent of Tanzania’s adult population now have access to formal financial services, yet only 32 per cent utilise traditional banking services.
The data indicates that mobile money has played a significant role in bridging the gap, reaching approximately 54 per cent of the population outside the conventional banking system.
The integration of platforms such as the Tanzania Instant Payment System (TIPS) has further facilitated seamless transactions between bank accounts and mobile wallets, including tax and bill payments.
The minister for Finance, Dr Mwigulu Nchemba, who officiated the event, reaffirmed the government’s commitment to promoting digital financial services and reducing transactional costs to ensure efficiency.
“We have reduced charges on transactions, and tax payments now attract no charges at all,” Dr Nchemba said, adding that ongoing reforms aim to further minimise delays in digital payments.
The event attracted senior government officials, financial sector leaders, and private sector representatives.
Distinguished speakers included Mr Rajesh Bansal, CEO of the Reserve Bank Innovation Hub (India), and Mr Matheus Rauber, Senior Advisor at the Central Bank of Brazil.
The discussions centred on strategies to accelerate Tanzania’s transition to a cash-lite economy.
However, stakeholders stressed that technology alone is not enough to realise the full benefits of a cash-lite economy.
Effective implementation requires coordinated efforts from government agencies, financial institutions, technology providers and civil society.
With Tanzania’s financial ecosystem increasingly embracing digital solutions, the shift to a cash-lite economy is poised to drive innovation, enhance economic participation, and create a more inclusive financial environment.
